The UK green fuels industry will take a significant step forward with the launch of a £25 million competition to build advanced biofuel plants. The Department for Transport funding is supported by significant private sector investment and will enable the construction of up to 3 demonstration biofuel plants, the first of their kind in the UK.

At the announcement, Transport Minister Baroness Kramer said: “This government is helping the transition to greener, cleaner fuel. Advanced biofuels will play an increasingly important role in lowering carbon emissions from transport and these fuel plants will help ensure the UK is leading the way in building our capacity.

“This country has world-class research capabilities and I want the development of green technology to be part of this success story. This will not only benefit the environment but boost investment in Britain.”

The fuel produced by the chosen technology must show a minimum of 60% greenhouse gas emissions reductions compared with fossil fuels. Advanced biofuels are made from waste materials such as agricultural residues like straw, using complex processing techniques. They can produce a wide range of transport fuels for roads and aviation.

This £25 million funding will be made available over 3 years. The competition will be run in 2 stages with a detailed expression of interest stage for potential bidders open until 13 February 2015, followed by full proposals in June 2015. The competition expects plants backed by this funding to be operational by December 2018 and produce at least 1 million litres of biofuel a year.